Kelly says many conventional income-generating investments, like healthcare stocks, look very expensive. While owning stocks like banks, utilities and insurance companies looks scary this is where stocks with good dividend growth and low valutions can be found.
He also thinks Japan and the US look very expensive at the moment but sees opportunities in Europe, where there are a lot of businesses that operate internationally but have cheaper valuations.
Kelly says this investment strategy is ideal for clients aproaching retirement who recognise the need for an income that grows and can’t go into the fixed income market.
